Econ Book 1209 Review

True or False: All states have rules to set limits on how much an ATM surcharge can be.

False

What was the name of the first credit union formed in the U.S. and when was it formed?

Oxford Provident Building Association; 1831.

A tangible way to see what you are saving.

Passbook

What is a credit union's motto?

"Not for profit, not for charity, but for service."

What is the most you can owe for an unauthorized purchase you make on your credit card?

$50

If you have an error on your credit card billing statement, how many days do you have to notify the company in order to set things right?

60 days

What type of financial institution is a credit union?

A cooperative financial institution.

Subtracting credits received during the present billing period from the balance of the previous billing period.

Adjusted Balance

Transfers a portion of the annual fees or charges to the sponsoring organization of the card.

Affinity Cards

What are 2 well known companies that issue traveler's checks to its members with no fees?

American Express and Visa

Once a year.

Annual

The amount a savings account will earn on interest in the course of a calendar year.

Annual Return

A computerized device that provides readily accessible cash to those who are eligible.

Automated Teller Machine (ATM)

The current money available in the depositor's account.

Bank Balance

Another name for Savings and Loan Association, originally built to assist first-time home buyers.

Building and Loan Association

How can you have your travelers' checks refunded if you lose them or they get stolen?

By providing the refund office with serial numbers and exactly which checks you have cashed and lost. By leaving a photocopy of check numbers with a trusted friend or relative. By keeping your original traveler's checks receipt with you at all times.

The limit on the amount given.

Ceiling

Statement that a sum has been deposited for amounts of time, sometimes at a higher rate of interest.

Certificate of Deposit

In order to make a profit, what may some financial institutions do in order to make a profit on travelers' checks?

Charge additional fees.

Type of bank account that uses written orders to direct payment from a bank based upon the funds available from a depositor's account.

Checking Account

Somethings given to guarantee repayment of a loan.

Collateral

A record of how well a person pays their bills and is financially responsible.

Credit History

A financial cooperative that provides loans to its members at lower rates of interest than would be available at other institutions

Credit Union

A card that acts like a check at a purchase; the money is removed from your account immediately.

Debit Card

Failure to fulfill a financial obligation.

Default

When an employee's paycheck is electronically transferred into their account by their employer.

Direct Deposit

A partial payment given in order to show intent of purchase.

Down Payment

Borrowing money from the bank for college tuition or other higher education expenses.

Educational Loans

The assumed amount that the family will contribute to the student's college tuition.

Expected Family Contribution

Assistance from the government which is to be repaid.

FFEL Stafford Loan

Manufacturer-to-consumer selling.

Factory Direct

Assistance from the government which is not to be repaid.

Federal Pell Grant

A credit union that is registered with the United States government.

Federal-Chartered Credit Union

The range of eligibility for a credit union, such as a teacher's credit union or a bricklayer's credit union.

Field of Membership

The cost for the conveniences of borrowing money.

Financial Charges

It allows you to avoid the financial charge by paying your current balance in full before "due date" shown; also called a "grace period".

Free Period

Total money earned, excluding all deductions.

Gross Income

How do Savings and Loan Associations pay earnings?

In installment payments

Paying on a regular basis at a set time each month or parts of a year.

Installment Payments

Charges that your bank must pay if you use an ATM that is "foreign", meaning not owned by your bank.

Interchange Fee

A percentage of the amount in the savings account which is a reward for the bank's use of money.

Interest

What is the place called where you buy traveler's checks?

Issuing Bank or Agency

What is a credit limit?

It is the amount of spending that the credit card company will allow you.

A medieval group that guarded valuables and negotiating loans as well as transporting money.

Knights Templar

The smallest amount allowed in an account without a financial penalty.

Minimum Balance

Regular mailed or emailed account of your bank transactions and financial activity.

Monthly Statement

A car market where the price sticker is the final sale price. There is no discussion over a final price.

No-haggle Dealership

A notice that is sent to the customer if their deposits are not enough to cover the cost of the check they have written.

Non-Sufficient Funds

Stretching one's credit beyond the financial guidelines.

Overextending

A charge is added against you if you withdraw your money before the agreed-upon date.

Penalty

What does PIN stand for?

Personal Identification Number

Actions which take the check from the merchant to the accounting centers of the bank.

Processed

Regulations that define how and when you get repaid in case of theft or misplacement.

Refund Policy

What type of loans do Savings and Loan Associations make?

Residential Mortgage Loans

When the IRA gets money from another qualified plan and usually at an employee's retirement.

Rollover

Gives less products than a bank would, but better returns on the money put into their accounts.

Savings and Loan

What type of loan is an auto loan?

Secured Loan

Paying back the loan is guaranteed by an asset like a piece of real estate.

Secured Loans

Twice a year.

Semiannual

Specific number for the purpose of verification and location in case of theft or misplacement.

Serial Number

What type of number / information is on a traveler's check?

Serial number, denomination information, and the date and location of the issuing bank or agency.

Registered with the state in which the credit union resides.

State-chartered

You will not be charged any interest before you begin repayment.

Subsidized Loan

Added fees for various services.

Surcharges

What is one basic thing to remember when purchasing a car?

That buying a car should be objective not subjective.

What is one advantage of having an IRA rather than having a savings account?

They are basically the same except for the fact that IRA's are accounts that allow you to defer taxes.

What is one advantage of using traveler's checks?

They can be replaced if lost or stolen.

The deposit that gives a certain amount of interest in a specified amount of time.

Time Deposit

What was the initial purpose of Savings and Loan Associations?

To serve a short-term mission.

Checks which function almost like cash but are replaceable if lost or stolen.

Traveler's Checks

A loan that will charge you interest from the start.

Unsubsidized Loan

A guarantee that is legally binding to hold the dealership to what it has promised.

Warranty

Type of business that eliminates the retail part of the transaction.

Wholesale Club